Modifying Taxable Values for Pretax Deduction Overrides

Access the Pretax Deduction Overrides form.

Tax Area

This field displays the geographical location and tax authorities for an employee work site, including employee and employer statutory requirements. In the Vertex payroll tax calculation software, the tax area code is synonymous with GeoCode.

Tax Type

This field displays the code from UDC 07/TX that specifies the type of payroll tax being processed.

Pretax Deduction

This field displays the predetermined user defined code that allows Vertex to use current tax laws in the applicable jurisdiction to determine whether the DBA is pretax in that tax area. These codes eliminate the need to set up tax-exempt status in the P06TAX window or to have multiple deductions to accommodate pretax status in one state but not another.

Deduction Description

This field provides a description of the Pretax Deduction field.

Pay Method

This field always displays one of these two values:

R: Regular pay

S: Supplemental Pay (for example, a bonus)

Taxable Value

This field displays the default taxable value associated with a deduction in a specific tax area. This field always displays one of these two values:

0: Deductable (reduces taxable wages)

1: Non Deductable (taxable wages are not reduced)

Override Taxable Value

Use this field to override the taxable value assigned by the system. Values are:

Blank: The system uses the default taxability setting defined by Vertex

0: The pretax deduction does not reduce the taxable gross wage

1: The pretax deduction reduces the taxable gross wage